Higher-cost, Hyper-targeted Efforts Can Win Big (1,164 words)
With the high connection approach, you can invest heavily in the outbound and incentive costs to create highly unusual, memorable and dramatic campaigns that fly in the face of traditional notions about direct marketing. That means you can produce results for some of the most difficult challenges.
For Corporate Express, an office-supply company, we needed to attract senior-level purchasing managers at large companies, possibly the most frequently targeted (and therefore least responsive) prospects out there. Our team hyper-targeted a list of tens of thousands of initial prospects down to about 550. The promotions team then developed a piece and sent it along with a corporate-branded nautical compass. Each prospect that responded to the call to action on the piece was rewarded with the the modern-day compass—a GPS unit—that was hand-delivered by a Corporate Express sales professional. The fully loaded cost per unit was $165, with a secondary incentive cost of $190, for a total campaign cost of $105,000. The program initially generated eight new accounts, amounting to $1.77 million in recurring revenue.
Why do we so seldom see this kind of approach? Perhaps the high cost of targeting a small number of potential customers alarms people. But if they did the math, they just might change their minds.
Daniel Kelman is the director of 1:1 Marketing at The Integer Group, a promotions and marketing agency based in Denver. Reach him at (720) 497-8170 or e-mail firstname.lastname@example.org.